July 25, 2024
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Despite Cut in Supply, Russia’s Oil Exports Climbed

Russia’s crude oil exports by sea have been exceeding the country’s targeted export reductions as part of the OPEC+ pact for weeks, with the most recent week’s observed shipments as high as 360,000 barrels per day (bpd) above target.

In the week to October 29, Russia shipped around 3.64 million bpd of crude oil from its oil export terminals, up by 110,000 compared to the week prior, according to the data reported by Bloomberg.

OilPrice.com reports that higher shipments out of the port of Novorossiysk in the Black Sea contributed to most of the gains in crude flows from Russia in the last week of October and were only partially offset by a lower number of crude oil tankers that left Russia’s ports in the Baltic Sea and on the Pacific.

The report added that the four-week average crude oil shipments out of Russia were slightly lower at 3.48 million bpd in the week to October 29, a drop of around 20,000 bpd compared to the four-week average in the four weeks to October 22.

Even this slightly lower 3.48 million bpd export volume for the average of the four weeks to October 29 was nearly 200,000 bpd higher than the exports Russia would have to ideally stick to in order to fulfill its pledge to cut exports by 300,000 bpd, Bloomberg notes.

Russia’s commitment to reduce its oil exports by 300,000 bpd includes oil products, Russian Deputy Prime Minister Alexander Novak said earlier this month in remarks that sowed further confusion about how much oil supply Russia is really withholding from the market.

Russia has pledged to reduce its oil exports by 300,000 bpd until the end of 2023, in a show of solidarity with its OPEC+ partner Saudi Arabia, which is voluntarily reducing its oil production by 1 million bpd until 2023.

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